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The Shepherd Family Partnership
On August 1, 1991, petitioner executed the Shepherd Family
Partnership Agreement (the partnership agreement). On August 2,
1991, John and William executed it. The Shepherd Family
Partnership (the partnership) is a general partnership
established pursuant to Alabama State law. The partnership
agreement designates petitioner as the managing partner, with
power to “implement or cause to be implemented all decisions
approved by the Partners, and shall conduct or cause to be
conducted the ordinary and usual business and affairs of the
Partnership”. The partners’ interests in the partnership’s net
income and loss, capital, and partnership property are as
follows: Petitioner--50 percent; John–-25 percent; and William–-
25 percent. The partnership agreement provides that these
partnership interests will continue throughout the existence of
the partnership unless the partners mutually agree to change
their respective interests.
The partnership agreement provides that each partner shall
have three capital accounts–-a permanent capital account, an
operating capital account, and a drawing capital account. The
partnership agreement states that the initial permanent capital
account for each partner, as of August 1, 1991, is $10 for
petitioner and $5 each for William and John. In this same
section, captioned “INITIAL CAPITAL CONTRIBUTIONS”, the
partnership agreement also states: “Each Partner shall be
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Last modified: May 25, 2011